Orica has lodged preliminary plans to build a new 30,000-tonne ammonia tank at its Kooragang Island plant.
The project will help 'future-proof' the site and provide strategic flexibility for future operations.
"As part of our forward planning, we are considering various initiatives that will ensure our manufacturing facility remains sustainable in the long term," Manufacturing Centre Manager Paul Hastie said.
The site is currently facing a number of challenges, including the high local cost of natural gas and a fluctuating global commodity price of ammonia.
"Improved ammonia storage capacity would give the site the capability to respond quickly to changing market conditions," Mr Hastie said.
The project will improve the cost effectiveness of importing and exporting ammonia through the use of larger shipping vessels. It will also increase flexibility when undertaking maintenance on storage infrastructure.
"In addition, the new, larger tank would give the site the capability to alternate between manufacturing ammonia on site or importing ammonia, depending on market conditions at the time," Mr Hastie said.
The proposed tank project is part of a suite of initiatives designed to ensure the enduring viability of Orica's Kooragang Island site.
Other initiatives include a $39 million project toupgrade the prill tower.
The upgrade is expected to reduce PM2.5 (fine particle) ammonium nitrate emissions by 99 per cent.
Fibre-bed scrubbing technology will capture ammonium nitrate particles produced during the manufacturing process.
Installation of the scrubber is expected to be completed by November 2023.
Orica also invested $90 million on the installation of three flaring systems to significantly reduce the risk of ammonia emissions and their associated odour.
The company is also conducting feasibility studies for a strategy to decarbonise it Kooragang operations.
Kooragang Island plant snapped up almost half of the carbon credits that were on offer at the government's latest auction.
The company, which secured contracts to deliver 3.37 million tonnes of abatement, will use them to reduce the plant's pollution footprint.
An environmental assessment for the new ammonia tank proposal, which will include a hazard and risk assessment, will be submitted to the Department of Planning, Industry and Environment in the coming months.
